Intu Properties, which also owns the Arndale Centre in Manchester and Gateshead's Metrocentre, saw shares fall by more than a third after a consortium of bidders pulled the proposed deal, blaming economic uncertainty and market volatility.

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Intu said market conditions meant the consortium - led by John Whittaker's Peel Group - could not continue with its proposed offer within the timeframe set out by City takeover rules.

Intu said the decision was due to "the uncertainty around current macroeconomic conditions and the potential near-term volatility across markets".

It is the second failed takeover attempt for Intu after Hammerson abandoned a £3.4 billion approach in April.

It comes despite a number of extensions to the takeover timetable, since the consortium comprising Peel Group, Olayan and Brookfield Property tabled a £2.8 billion offer in October.

Peel already has a 27.3% stake in Intu.

Mr Whittaker, chairman of the Peel Group, said: "We remain fully committed to Intu Properties as a long-term strategic shareholder, as demonstrated by our participation in the consortium's possible offer."

Intu said it plans to continue investing long term in its shopping centres, but will lower investor dividend payouts in the short term given the reduced pool of potential buyers and "challenging" asset-disposal potential.

It added the board will re-engage with major shareholders, including Peel, and complete the search for a successor to its chief executive.